New Stimulus Bill Passes House
The other day we covered the news of the brand new $3T stimulus bill introduced by the Democrats in the U.S. House of Representatives. The HEROES act has now passed the House, however the stimulus, which gives up to $6K for families, is not likely to pass the Senate in its current form.
Republican Senate Majority Leader Mitch McConnell has made his opposition to the new HEROES Act very clear. In various tweets he has disparaged the legislation describing it at one point as a, “…parade of absurdities” and “unsalvageable” while also describing it as, “dead on arrival”.
Forget about this $3 trillion left-wing wish list that even House Democrats are criticizing. Republicans are focused on practical solutions like legal liability protections for medical workers and the schools, universities, and businesses that will be trying to re-open. pic.twitter.com/tSRbJMeilh
— Leader McConnell (@senatemajldr) May 15, 2020
While the $3T bill does provide new stimulus relief to Americans, at 1,800 pages long it is designed to address the many problems brought on by the Coronavirus epidemic. Unsurprisingly Senate Republicans and House Democrats disagree on exactly what problems we face and how the Stimulus money can solve them.
Is A New Stimulus Likely?
While the HEROES act is almost guaranteed not to pass the Senate in its current form, Mitch McConnell along will Senators on both sides of the aisle have stated their intentions to pass some sort of additional relief bill. In an interview with Fox News McConnell said Senate Republicans and President Trump’s administration will be on the same page when it comes time to pass a new bill.
McConnell also said his priority is to pass liability protections for businesses “brave enough to begin to open up to economy again.” Senate Republicans want narrowly crafted protections directly related to the Coronavirus. They also don’t seem to be in a huge rush as they want to see how the previous stimulus bills work through the economy.
Will the New Stimulus Include Checks for Americans?
While the Democrats have now passed their vision of the next Stimulus with the HEROES Act and Republicans have stated their intentions to pass a new stimulus bill when they feel one is necessary, the big question is what will be in it.
A good place to start is those liability protections. McConnell said that is the most important issue for him. Both sides have also made it clear they want additional relief for Americans, however what that will look like in the end may vary wildly from the up to $6K per family in additional stimulus funds provided within the HEROES Act. McConnell has said the new bill, “is not going to be a $3T left wing wish list”.
What Is Really Going On With the New Stimulus?
Both sides are posturing to get their issues included within what is still likely to be a massive upcoming stimulus. The next stimulus bill may be the last for awhile, so both sides are pressing in on issues they feel are the most important in order to get our economy going again.
We’ll see some of what is in the HEROES Act pass, however any new bill will require a lot of negotiation which is going to take time. I wouldn’t expect to see a new stimulus bill passed for some time as Republicans need to draft their own version and release it when they feel the time is right.
Stimulus Bill Passes House – Bottom Line
While the U.S. House of Represenatives has now passed the 1,800 page HEROES Act including up to $6K in stimulus funds for families along with many other programs, it will not pass the Senate in its current form. Republicans will draft their own competing legislation in the Senate and then the negotiations will begin. Let’s hope they work quickly to get aid to the people who need it.
What do you think of the new stimulus?